Car Insurance Policies
The primary purpose of an automobile insurance policy is to provide the operator of an automobile protection against any expenses that may occur due to a driving accident or any other type of event that results in an automobile being damaged. Automobile insurance is separated into three broad categories: coverage that is required, collision coverage, and what is referred to as comprehensive coverage. Every state within the United States has a law that makes it mandatory for automobile operators to possess some form of insurance that will provide them with liability in the event that they cause an accident to occur. A liability insurance plan pays for the expenses of other automobile operators other than the actual policy holder that occurs due to an accident. By making the possession of liability coverage mandatory for all individuals who operate a vehicle it prevents individuals from having to deal with losses as a result of someone else acting negligent or making a mistake. Although this is mandatory there are still many automobile operators who do not have any insurance coverage at all. Due to this fact a huge amount of the states within the Unites States force uninsured automobile coverage to pay for any damage that occurs during an accident with driver who is also uninsured.
Two more types of coverage that can be obtained include collision coverage and comprehensive coverage, these two are not mandatory for automobile operators to have. Collision coverage provides a vehicle with coverage in the event that it is involved in a crash while in motion. Generally a collision coverage policy provides insurance against a vehicle coming into impact with an object that is stationary such as a tree or median. In the event that a vehicle collides with an animal the type of coverage that will protect that vehicle is comprehensive coverage. This type of coverage also protects a vehicle against external threats such as a fire, flood, theft, or natural disasters. The vehicles that benefit more under the protection of a comprehensive or collision coverage policy are the newer models, but they will not do much for older vehicles.
In order to maintain the validity of an automobile insurance policy, holders of the policy will be required to pay fees or premiums periodically. Deductibles are usually also a part of automobile policies. Deductibles are payments that drivers have to make upfront for damage before the insurance company will pay anything. The amount of the deductible is determined by the driver of the vehicle. The higher that the deductible is means the premium paid will be lower. It is a smart decision for a driver to get into contact with their insurance company as soon as they can after becoming involved in an accident if they are planning on filing a claim. The accident will be reviewed by the insurance company and they will determine what amount if any will be paid by them in order to cover the damage. It is in the best interest of an insurance company to not have to pay their policy holders who have been involved in an accident and for this reason it is not an uncommon occurrence for policy holders to have to deal with resistance from the companies that provide them with insurance. More information about automobile insurance policies can be researched online at websites such as sdlcgs.com.